LONDON, Jan 23 (Reuters) - The Swiss franc rose sharply
against the U.S. dollar on Thursday after the Swiss government
raised the level of capital that banks must hold against their
mortgage books, tightening monetary conditions.

The euro also rose against the dollar after surveys of
French and German business activity came in above
expectations.

Comments from the Bank of Canada, which said currency
depreciation should help exports, knocked the Canadian dollar to
a 4-1/2-year low, however, while the Australian dollar tumbled
back towards a 3-1/2-year low after a eaker-than expected survey
of Chinese manufacturers.

The U.S. dollar was 0.9 percent weaker at 0.9031 francs
and the euro was 0.3 percent lower at 1.2314 francs
after the Swiss government's move, which coincided
with this week's World Economic Forum in Davos.
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